So BMW has advertised a 335 xdrive for $479/month, $3,000 down, $750 acq fee. Price includes BMW loyaly cash of $750. Residual is 62% based on 15K. MSRP $47,895

a couple of questions as I haven't leased before:

1) why do they show 62% residual based on 15K when the lease they are offering is for 10K?

2) how do you negotiate an advertised lease deal? will they negotiate it?

I do want the sales guy to make some money but I don't want to get screwed at the same time. Is this lease based off of MSRP, so if I went in and just agreed to the terms that would be like paying MSRP for it? If so would it be possible to negotiate $1500-$2000 off the downpayment of this lease?

I just want to get an idea of what I am doing before going into the lease. I have a number in my head for payments and don't want to go over that, so if I can negotiate a better deal than advertised that means I can get a few options I was going to have to skip because of cost...

Do not do it. I tried a lease special and ended up walking out with a m sport 335i for less and plus its rare to find a 335i base with those options sitting at a dealer.

No I wasn't going to do a lease special, I just meant the advertised lease rates on their website, don't they base all leases off of those prices?

I am probably going to order a loaded M Sport with an MSRP around $56K, but I want to have an idea of what to ask for with the lease and was basing it on the lease prices on bmwusa.com. I am just wondering if I can do better or are those the best rates you can get?

Negotiate the selling price of the car. Residuals are set, but the money factor is often marked up by the dealer. Make sure you're getting the base money factor and focus your negotiations on selling price. You can do better than the advertised lease examples on BMWUSA.com

Negotiate the selling price of the car. Residuals are set, but the money factor is often marked up by the dealer. Make sure you're getting the base money factor and focus your negotiations on selling price. You can do better than the advertised lease examples on BMWUSA.com

thanks for the replies, did a little more research on leases last night and I understand a lot more now. Dealers probalby hate people like me who use the internet to gain knowledge

So the money factor is huge, I had two dealers tell me they only use BMW finance for leases which means that is probably set in stone, as long as they are not marking it up higher than BMW is. The way to get it cheaper than the advertised leases is by negotiating the "selling price"

So am I to assume those advertised leases on BMWUSA.com are based on MSRP and if you back it out you can figure out the money factor? then based on that money factor and a negotiated price, you can figure a lease on your custom built car and actually get better pricing than advertised?

It can change month to month and vary depending on model. But for August, it is .00145 for a 36 month lease across the board for the F30 (328i, 328xi, 335i, 335xi).

Thanks, the dealer I had e-mailed also confirmed this and said that even though it says lease good through Sept. 1 or something like that its actually locked for 60 days with their finance department.

I told him I was looking for something a little more aggressive than the advertised lease on a MSRP of $57195. $0 down only first payment, tax, title, registration due at signing...

He came back with $715/month. Which to me seems pretty high considering he admitted the money factor was .00145 meaning the only thing they can play with is MSRP and using BMW config he is basically giving me $800 off invoice! thats it.

in fact based on the .00145 money factor, 62% residual, $3K down, $725 acq. fee basically offset by the $750 loyalty cash, the advertised lease is giving you $1700 off MSRP! So this is a worse deal then the advertised one, or am I doing something wrong with the calculations

Thanks, the dealer I had e-mailed also confirmed this and said that even though it says lease good through Sept. 1 or something like that its actually locked for 60 days with their finance department.

I told him I was looking for something a little more aggressive than the advertised lease on a MSRP of $57195. $0 down only first payment, tax, title, registration due at signing...

He came back with $715/month. Which to me seems pretty high considering he admitted the money factor was .00145 meaning the only thing they can play with is MSRP and using BMW config he is basically giving me $800 off invoice! thats it.

in fact based on the .00145 money factor, 62% residual, $3K down, $725 acq. fee basically offset by the $750 loyalty cash, the advertised lease is giving you $1700 off MSRP! So this is a worse deal then the advertised one, or am I doing something wrong with the calculations

A straight lease on a $57195 car with this month's terms and 0 down is $783/mo pretax. Invoice on the car should be about $52750, and a lease on that is $653/mo.

To arrive at $715/mo, he is selling you the car at about $2100 over invoice (or is not really giving you the base money factor). I ignored the acquisition fee since, as you said, it's basically offset by the loyalty cash.